UK house prices bounce back but London weak

British house prices rebounded in June after three months of falls, data from mortgage lender Nationwide showed on Wednesday, bucking other signs of housing market weakness, even as prices in London suffered their steepest quarterly drop since 2010.

House prices rose 1.1 per cent in June after falling 0.2 per cent in May, the biggest jump since April 2015, Nationwide said. Compared with a year earlier, prices were up 3.1 per cent versus 2.1 per cent in May.

Nationwide warned that monthly growth rates can be volatile and said it was unclear if the latest increase reflected improved demand. It expects prices to rise by about 2 per cent in 2017 overall.